BUS 498 Midterm (CHPT 3)

Which of these is a way to reconfigure a value chain?

entering an industry by offering sporting events on streaming video when competitors are offering them through cable hookups

Which of the following help determine competitive industry structure? 3

firms' degree of pricing power

Which of the following help determine competitive industry structure? 2

height of entry barriers

The amount that savers are paid for use of their money and the amount that borrowers pay for that use is best described as a(n)

interest rate.

According to the video, which of the following is an example of a buyer who will be able to successfully negotiate for lower prices?

large corporate customers with extensive service requirements

The online auction site eBay has more than 100 million active users, so buyers are more likely to find what they are looking for while sellers are more likely to find buyers for the items they are offering. What is this an example of?

network effects

A consolidated industry turns into a fragmented industry when

restrictive government policies are introduced in the industry.

Which of the following help determine competitive industry structure? 1

size and number of competitors

Generally speaking, which of these situations is likely to lead to greater profits?

an industry with fewer but larger competitors

Strategic-group mapping establishes that

competitive rivalry is strongest between firms that are within the same strategic group.

According to the video, which of the following is an example of a threat of substitute product or service?

driving instead of flying between two nearby cities

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry? 1

Establishing a niche

Ez Solutions Inc. has been operating in the country of Jamtland for almost a decade. The nation is currently experiencing an economic downturn. Which of the following is the most likely benefit of this economic condition for Ez Solutions Inc.?

Ez Solutions Inc. will have better access to highly skilled human capital at a lower cost.

The distinct differences across strategic groups reflect the strategies that firms pursue. How would you describe the strategy of firms in the same strategic group?

Firms in the same strategic group follow a similar strategy.

According to the video, which of the following is true of price-based competition?

It is intense in the airline industry due to high information transparence and low marginal costs.

Which of the following statements is true of an oligopoly?

It is often analyzed using game theory.

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry? 2

Leverage existing assets

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry? 3

Reconfiguring value chains

Incumbent firms can benefit from several important sources of entry barriers. Economies of scale are one such source. Which of the following is an implication of economies of scale for incumbent firms?

They can demand better terms from their suppliers

How do complements affect a primary product or service?

They increase the demand for the primary product.

Effective use of the PESTEL framework can help us identify

emerging opportunities and threats within an industry.